Research On Problem Of Purchasing Management In A Feed Processing Enterprise

Purchasing is increasingly getting the managers'recognition. As purchasing cost accounts for 80 per cent of the total sales in a feed processing enterprise, it has a high economy leverage. Along with the development of feed industry, some kinds of raw material become scarce and their prices fluctuate frequently, which makes it hard for companies to purchase them. So, in order to gain excellent material and reduce the product cost gradually, a feed processing enterprise has to enhance its purchasing management. This is also an important measure for the company to get competitive power. This article takes the material purchasing in a feed processing enterprise as the main research objective. At first, the meaning, the duty and the flow of purchasing and the content of purchasing management are briefly discussed. In succession, the present condition of feed industry and feed material market are analyzed with full and accurate data and the importance of purchasing in a feed enterprise is expounded. And then, the purchasing management of a feed enterprise is discussed in four aspects including the establishment of purchasing organization, purchasing strategies, supplier management and purchasing cost control. Purchasing department, purchasing procedure and posts in purchasing department are designed for a feed processing enterprise. Through qualitative analysis and quantitative analysis, the make or buy strategy is discussed. It is argued that a feed processing enterprise should absorb a lipid processing enterprise to take its share to solve the problem of making soybean meal. As for pre-mixed feed, whether the company should make it or not depends on the quantity of the pre-mixed feed used in the company. Taking a product representative for example, the material orientation model is set up and based on this model, the purchasing strategies of main materials are discussed. The index systems of supplier evaluation and supplier performance appraisal are built up. In this article, the suppliers of a feed processing enterprise are divided into three types such as short-term target type, long-term technology target type and long-term commerce target type. Each type should adopt specific supplier relationship management. At last, purchasing cost control is discussed in two aspects including inventory control and price control. Five methods are put forward to control price such as concentrated purchasing, combined purchasing, futures hedging, international purchasing and substitute of materials. This article is full of practice. It could give some ideas to feed enterprises to realize the important statue of purchasing and strengthen their purchasing management.